India’s Economic Times said, Tata Communications Ltd (TCL) formerly a state-run firm in which the government still owns 26 percent has been given the go ahead to bid for the Sri Lankan telco.

TCL had submitted the bid last month, the newspaper said, citing an unnamed Indian government official.

The report said in 2008, TCL had bid 80 million US dollars for the firm, but this time it is expected to have bid less. India’s Mahanagar Telecom Nigam Limited (MTNL) had submitted a higher bid at the time, but later pulled out.

The report said TCL was still negotiating the purchase, but is not clear whether the bid is still active. Suntel’s chief executive Jeremy Huxtable told LBO that he had no comment to make at this time.